In a society of saints
Over at the Adam Smith Institute, Dr. Eamonn Butler has a review of Tom Palmer’s new book, The Morality of Capitalism. Summarising one chapter, Dr. Butler explains that
The Chinese economist Mao Yushi [presents] an interesting paradox. If we were all completely benevolent – looking out for the interests of other people rather than ourselves – we would have just as much conflict as capitalism is said to give us. We would be fighting shopkeepers to charge us more and reduce their quality. The arguments would be just as red in tooth and claw, but the incentives would all be to reduce value rather than to create and increase it, as capitalism does.
Perhaps. But managing conflicting priorities is not the only reason that we need a capitalist system; nor does the existence of a conflict in a community motivated by other-interest suffice to justify capitalism. A deeper understanding of the role of markets is required.
To read the rest of this article, and to comment, visit the Adam Smith Institute website.
"Lord! Tell us how to allocate resources amongst the various second and third order productive processes in a rational manner, for only you have the ability to synthesise dispersed knowledge without the signals provided by market-prices!"